Green ICT

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  • The debate that climate change has stimulated about sustainable development will present many further opportunities and challenges. The enterprise must proactively sense the changing views of its stakeholders. The IT organization needs to understand the role of ICT in sustainability if it is to be a valued advisor. None of these projections are based on Gartner's research. And we don't warrant that they are correct. However, they do represent the current perceived wisdom for strategic planners and policymakers. And therefore, they will have significant impact on national and international policies and the decisions of customers and other enterprise stakeholders. For perhaps the first time, the mainstream language of business and marketing is starting to meet the language of ecology. There remains a large gap in some of the political tensions, philosophies and what the real implications are of some of the vernacular such as eco efficiency and environmental sustainability. But in climate change there is some common ground on which those differences will get debated. The approaches to tackling climate are so pervasive that if the science on climate change proves correct, then all aspects of sustainable development will be on the table, particularly when one factors in the growth of the developing economies. Resource constraints will start with carbon and extend quickly to water, but we would anticipate the issues to be wide-ranging. The instability in oil prices came as a shock to many organizations and has served to sow the seeds of doubt related to ongoing status quo of inexpensive fossil fuels. The projections of approximately 50% growth by 2030 in the global demand for energy further compound the scale of the challenge inachieving even 50% reductions in GHG emissions, let alone 90% cuts. Not least because most of that growth will come from fossil fuels.
  • Traditional Energy Chain Generation Generation is the process of converting mechanical energy into electrical energy There are currently about 3,200 electric utilities throughout the United States, but only about 700 of them operate facilities that generate electric power Transmission Transmission is the process of carrying high voltages of electricity from generation facilities over long distances Some companies provide both generation and transmission functions; these are called G&Ts, or "power supply cooperatives" Distribution Distribution is the process of carrying electricity from transmission substations to homes and businesses Many electric utilities are exclusively distribution utilities - that is, they purchase wholesale power from others to distribute it, over their own distribution lines, to the ultimate customer The example above highlights efficiency losses when electricity is generated by a coal fired power station and delivered to the home including generation parasitic losses, high-voltage and low voltage transmission & distribution losses
  • This slide applies to Amazon EC2, but just as easily describes Amazon S3’s value proposition. Gap between blue and red is wasted hardware, software, energy.
  • Green ICT

    1. 1. eco-Innovation ICT Conference
    2. 2. Background <ul><li>ICT has and is contributing the overall business performance globally </li></ul><ul><li>e-waste , the fastest-growing part of the waste stream , also brings negative impact to the environment </li></ul><ul><li>The greening of the technology industry is a trend that everyone developing with impressive velocity, and with good reason. </li></ul>
    3. 3. Trends
    4. 4. IT industry Can’t Avoid Involvement Which industries should care most? <ul><li>High brand exposure </li></ul><ul><li>Large environmental impact </li></ul><ul><li>Natural resource dependence </li></ul><ul><li>Current regulation </li></ul><ul><li>Potential for regulation </li></ul><ul><li>Product, usage changes </li></ul><ul><li>Competition for talent </li></ul><ul><li>Strategic opportunities </li></ul>IT?
    5. 5. Goals of Green IT
    6. 6. Why Green IT?
    7. 7. Seeing the whole energy picture Digital Reduced Smart Building Real-time GNP Transportation Products Controls Measurement Electricity E missions Recycling Chemicals Water IT Production ~ 4% IT Usage ~ 2% IT Application >90%
    8. 8. Vast room for efficiency improvement The “centralized” one-way flow of electricity – ripe for change Source: Intel The Real Costs of Saving the Planet -- Critics say limiting carbon emissions could cost trillions. But a new study by Mckinsey suggests the costs are much lower
    9. 9. eco-Innovation for ICT <ul><li>Software and technology innovations should be committed to help people and organizations around the world improve the environment </li></ul><ul><li>The overall goal of eco-Innovation for ICT is to reduce the negative impact of ICT operations and products, and to be a leader in environmental responsibility </li></ul>
    10. 10. Virtualization is becoming a more wide spread and profound part of business and personal life Laptops Servers The Cloud Eucalyptus
    11. 11. Customer Example: Leading North American Utility Impact of VMware <ul><li>Hard cost savings </li></ul><ul><ul><li>70-80% reduction in data centre space, power and cooling </li></ul></ul><ul><ul><li>$8mm savings in 2 years </li></ul></ul><ul><li>Operational efficiency </li></ul><ul><ul><li>Server rebuild and app load from 20-40 hrs to 15-30 minutes </li></ul></ul><ul><ul><li>10,000 man hours saved per year </li></ul></ul>VMWare said that server consolidation is just the beginning, distributed power management is next Source: VMWare BEFORE AFTER Servers 1,000 80 Storage 270 TB DAS 140 TB SAN & NAS Network 3,000 cables/ports 300 cables/ports Facilities 200 server racks 400 power whips 10 server racks 20 power whips
    12. 12. Cloud computing, such as Amazon, can help manage peaks and valleys without Capex Infrastructure Cost $ time Large Capital Expenditure Source: Amazon You just lost customers Predicted Demand Traditional Hardware Actual Demand Automated Virtualization in the cloud
    13. 13. Many Organization Formalizing Green Practices Source: CompTIA surveys of IT Professionals | Base = 400 <ul><li>42% expect to have a comprehensive green policy within 2 years </li></ul><ul><li>35% rank in the upper half of priorities in their organizations; 32% place it in the middle </li></ul><ul><li>36% follow news about green IT on a frequent basis; 46% occasionally </li></ul>
    14. 14. A holistic life cycle strategy process 1. Reduce Energy Usage 2. Improve Recycling 3. Green The Business 4. Measure & Comply
    15. 15. 1. Reducing power consumption <ul><li>Knowledge </li></ul><ul><li>B ehavior </li></ul><ul><li>Technology </li></ul><ul><li>What is our existing power consumption (costs and volumes)? </li></ul><ul><ul><li>across the entire business value chain </li></ul></ul><ul><ul><li>across all geographies </li></ul></ul><ul><ul><li>by type of energy (e.g., electricity, oil , gas ) </li></ul></ul><ul><li>What are the drivers and risks of this consumption? </li></ul><ul><ul><li>to business operations </li></ul></ul><ul><ul><li>to our technology infrastructure and costs </li></ul></ul><ul><ul><li>to our facilities , power, and water requirements </li></ul></ul><ul><li>What is our long term vision for r ising energy costs ? </li></ul><ul><ul><li>conservation , re-engineering, technology </li></ul></ul><ul><ul><li>renewable energy sources </li></ul></ul><ul><ul><li>lower consumption requirements </li></ul></ul><ul><li>What is our migration path to achiev e these goals ? </li></ul>Key Questions: Current Position: Do we have good data?
    16. 16. 2. Re-use and recycling <ul><li>Knowledge </li></ul><ul><li>B ehavior </li></ul><ul><li>Benchmarks </li></ul><ul><li>What is our existing recycling pla n ? </li></ul><ul><li>Who is responsible for it? Globally? </li></ul><ul><li>What products does it cover? </li></ul><ul><li>Are we aware of all major toxins? </li></ul><ul><li>How supportive are our employees? </li></ul><ul><li>How effective are our current practices? </li></ul><ul><li>What benchmarks should we be using? </li></ul><ul><li>Are we sufficiently green IT buyers? </li></ul><ul><li>What is the optimal IT product life cycle? </li></ul><ul><li>How well do we evaluate our recycling partners? </li></ul><ul><li>What is our plan to address any unmet goals ? </li></ul>“ Green IT” Contribution Current Position: <ul><li>Recycling % Confirmed </li></ul><ul><li>Checklist : Recycled </li></ul><ul><li>Servers, disks </li></ul><ul><li>Desktops, laptops </li></ul><ul><li>Phones, PDAs </li></ul><ul><li>Network equipment </li></ul><ul><li>Printers, copiers, fax </li></ul><ul><li>Home systems </li></ul><ul><li>Power supplies </li></ul><ul><li>Industry-specific equip. </li></ul><ul><li>Batteries </li></ul><ul><li>Paper </li></ul><ul><li>Cartridges </li></ul><ul><li>Glass, plastic </li></ul><ul><li>Metals, etc . </li></ul>Key Questions: ___
    17. 17. 3. Greening the business <ul><li>Knowledge </li></ul><ul><li>Priorities </li></ul><ul><li>Technology </li></ul><ul><li>Do we have a holistic, sustainable, & </li></ul><ul><li>global, environmental strategy? </li></ul><ul><li>Are we effectively using IT for: </li></ul><ul><li>- smart, energy-efficient products </li></ul><ul><li>- improved logistics </li></ul><ul><li>- more efficient buildings </li></ul><ul><li>- Reduced office space </li></ul><ul><li>- Reduced business travel </li></ul><ul><li>- Supply chain efficiencies </li></ul><ul><li>- Demand chain efficiencies </li></ul><ul><li>- Automated customer service </li></ul><ul><li>- Industry-specific services </li></ul><ul><li>- Other </li></ul><ul><li>What is our plan to apply technology to the above issues over the coming years? </li></ul>“ Green IT” Contribution Current Position: Key Questions:
    18. 18. 4. Measurement, governance & CSR Key Questions: Current Position: <ul><li>Knowledge </li></ul><ul><li>Priorities </li></ul><ul><li>Effectiveness </li></ul><ul><li>Can we measure our firm’s carbon footprint? Globally? </li></ul><ul><li>Is green thinking built into our business approach? </li></ul><ul><li>Are we addressing our key environmental stakeholders? </li></ul><ul><li>Do we have accurate, real time environmental data? </li></ul><ul><li>Can we tie environmental impact to key business processes? </li></ul><ul><li>How do our efforts compare to our competitors? </li></ul><ul><li>Can we withstand outside environmental scrutiny? </li></ul><ul><li>Are there risks that we haven’t adequately addressed? </li></ul><ul><li>Are we complying with global regulations, investor requirements? </li></ul><ul><li>Are we strategically shaping these expectations within our industry </li></ul><ul><li>Are we living up to our own company values? </li></ul><ul><li>Are we making a contribution to our customers & industry? </li></ul>Customers, prospects Employees, recruits Suppliers, partners Investors, regulators Stakeholders
    19. 19. Typical environmental planning process Direction Setting -- Vision Pilot Projects Executive Awareness <ul><li>“ Green IT” Trends </li></ul><ul><li>Industry experiences </li></ul><ul><li>Current positioning </li></ul><ul><li>Case for action </li></ul><ul><li>Reduce power usage </li></ul><ul><li>Re -use & recycling </li></ul><ul><li>Greening the business </li></ul><ul><li>Metrics & compliance </li></ul><ul><li>Priorities </li></ul>Action Plan <ul><li>Annual objectives </li></ul><ul><li>Business implications </li></ul><ul><li>Cost/benefits </li></ul><ul><li>Schedule </li></ul><ul><li>Governance / </li></ul><ul><li>compliance </li></ul><ul><li>“ Green IT” solutions </li></ul><ul><li>T ools & technologies </li></ul><ul><li>Product changes </li></ul><ul><li>Process changes </li></ul><ul><li>Policy changes </li></ul><ul><li>Key m etrics </li></ul>Prepare for the long haul ; involve the whole organization – there are leadership opportunities for IT ; most companies are in very early stages 1 2 3 4

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